How to Conduct a Feasibility Study For Your Business in Nigeria: A Practical Guide

A feasibility study is the smart entrepreneur’s first move. It is how you test if your business idea will work before investing money, time, and energy. In Nigeria’s unpredictable business environment, skipping this critical step is a fast track to failure. It is no coincidence that more than 70% of startups shut down within a few years, most of them never validated if the idea was actually viable in the first place.

Conducting a feasibility study gives you clarity. It forces you to answer tough questions about market demand, funding realities, operational logistics, and regulatory hurdles, questions that too many founders ignore until it is too late. From launching a cassava processing plant in Ogun to building a mobile payment platform or opening a fashion business in Aba, the process remains the same: check the facts before you take the leap.

This guide is a hands-on roadmap for conducting a feasibility study in Nigeria. Inside, you’ll find practical steps, real-world examples, a localised case study, and a free checklist to help you validate your idea with confidence. By the end, you will be equipped to turn a hopeful concept into a business with legs. If you need expert guidance as you start your business, then come to the Entrepreneurs Success Blueprint Program.

Key Takeaways

• A feasibility study helps Nigerian entrepreneurs validate their business idea by assessing market demand, technical requirements, financial viability, and legal obligations before investing.
• Conducting a feasibility study involves clear steps—defining the idea, researching the market, evaluating costs and operations, and reviewing regulatory requirements to avoid costly surprises.
• Real-life examples, like the cassava processing plant case study, show how to apply feasibility study insights to guide smart, data-driven business decisions.
• Skipping a feasibility study increases the risk of failure, while doing it right positions your business for sustainable growth and long-term success.

See also: Step-by-step guide to start a successful business.

Watch the video on how to conduct a feasibility study for your business. Simply tap the red button below!

What Is a Feasibility Study?

A feasibility study is a practical tool that helps you determine if your business idea can succeed in the real world. It is not based on passion or guesswork, it is rooted in facts, research, and realistic projections. It helps you answer a critical question: Is this business idea worth pursuing, or will it cost more than it’s worth?

Think of it as your idea’s first test. The goal is to examine your proposed venture from all angles: market demand, technical requirements, financial viability, legal implications, and operational structure. A good feasibility study does not just say “yes” or “no.” It gives you a full picture of what is possible, what needs fixing, and what risks you must plan for.

It is important to note that a feasibility study is not the same as a business plan. The study comes first. You use it to validate your concept, to prove the idea is viable. Once you have confirmed it is worth doing, you can then move on to writing your full business plan using our business plan template. Skipping this step is like building a house without checking if the land can support the foundation.

Why Is a Feasibility Study Important for Nigerian Entrepreneurs?

Starting a business in Nigeria is no small feat. The opportunities are vast, but so are the challenges. From power supply issues to shifting regulations and unpredictable market behaviour, it’s a landscape that demands preparation. A feasibility study for a business plan helps you step into this environment with your eyes wide open.

Conducting a feasibility study before launching gives you clarity where others rely on assumptions. It allows you to dig deep into the realities of your market: who your customers really are, what they want, who your competitors are, and how much it will actually cost to deliver your product or service. This insight protects you from launching a great idea at the wrong time, in the wrong place, or with the wrong approach.

For Nigerian entrepreneurs, this process also helps in securing funding. Investors, banks, and even grant providers want proof that your idea makes sense. They are not swayed by enthusiasm alone, they want numbers, evidence, and a clear understanding of how risks will be managed. A well-executed feasibility study shows them that you’ve done the work. It demonstrates that your business idea is not just viable, it is ready.

Types of Feasibility Studies You Should Know

A strong feasibility study does not just focus on one aspect of your business idea. It looks at the entire picture. That is why there are different types of feasibility studies, each answering a specific question about your proposed venture.

For entrepreneurs in Nigeria, where the business environment can be both promising and unpredictable, covering all these areas gives you a clear advantage.

Here are the six major types you need to understand:

Market Feasibility

This looks at whether there is a real demand for your product or service. Who are your customers? What are their habits, pain points, and preferences? Are there already businesses serving them, and how can you stand out? In Nigeria’s competitive and price-sensitive markets, a proper market analysis can make or break your idea.

Technical Feasibility

This checks if you have the tools, technology, equipment, infrastructure, and skilled labour to deliver what you promise. It is especially important for ideas involving production, manufacturing, or logistics, areas often affected by infrastructure challenges in Nigeria.

Financial Feasibility

This evaluates how much it will cost to start and run the business, how much you are likely to earn, and whether it all adds up to profit. A feasibility study helps you understand your break-even point, funding needs, and return on investment. It is also a key part of building trust with investors or lenders.

Legal and Regulatory Feasibility

In Nigeria, complying with laws can be complex, depending on the sector. This part of the study helps you identify all legal requirements—business registration, taxes, licenses, permits, and industry-specific regulations, so you don’t get blindsided by legal issues after you’ve launched.

Operational Feasibility

This focuses on how the business will run day to day. Do you have the right people, systems, and supply chain in place? Can you scale over time? For many small businesses in Nigeria, operational feasibility is often overlooked until problems begin to surface.

Scheduling or Timeline Feasibility

This is about your project timeline. How long will it take to launch and become profitable? Are there delays you should expect based on your location or sector? This part helps you set realistic expectations and plan your resources accordingly.

Each of these types adds a layer of clarity to your business idea. Taken together, they form a comprehensive picture that allows you to move forward with confidence or pause and reassess before making a costly mistake.

Step-by-Step Guide: How To Conduct a Feasibility Study in Nigeria

Learning how to conduct a feasibility study in Nigeria gives you a real advantage; it replaces assumptions with facts. This process helps you see if your idea has potential or if you are about to pour resources into a business that won’t fly. Let’s break down each step, with practical tips to help you get it right the first time.

Step 1: Define the Business Idea Clearly

Every successful business begins with a clearly defined idea. What are you selling? Who is it for? How is it different from what already exists?

Vague ideas are dangerous because you can’t test or measure them. If you’re planning to start a mobile payment solution, is it for market women in rural areas? Is it designed to work offline? Does it support USSD or QR codes?

What to include:

• The product or service
• The problem it solves
• Who it’s for (target market)
• Your unique selling point (USP)

Tip: A clear idea will make every other step in this study easier, from market research to financial projections.

Step 2: Conduct Market Research

This is the most important part of any feasibility study. It helps you find out if your target market exists, how big it is, and what your competition is doing.

Start with these questions:

• Who are your ideal customers?
• What are their buying habits, pain points, and preferences?
• Who are your direct competitors, and what are they doing well (or poorly)?
• How much are people willing to pay?
• Are there market trends or seasonal changes that will affect your business?

Where to get data:

• Ask potential customers directly, go to markets, send online surveys, and talk to community groups.
• Check online platforms like Google Trends or Statista.
• Read reports from SMEDAN, the Nigerian Bureau of Statistics, and industry associations.
• Join Facebook groups, WhatsApp communities, or Nairaland forums related to your industry.

Local insight: If you’re researching a cassava processing plant in Ogun State, you’d want to know the number of cassava farms, proximity to your factory, availability of raw materials year-round, and the demand for garri, starch, or ethanol in local and export markets.

Market research helps you avoid the number one trap: building something no one wants.

See Also: How to Perform a SWOT Analysis- A Complete Guide

Step 3: Assess Technical Feasibility

Now you ask: Can I realistically deliver what I’m planning?

Technical feasibility looks at your physical and technological requirements. It forces you to think about production capacity, supply chain, infrastructure, and staff capabilities.

Key areas to review:

• Equipment and machinery needed
• Access to electricity and water
• Transportation logistics (roads, fuel, delivery routes)
• Staff requirements and availability
• Technical know-how or specialised skills needed

Example: A bakery in Ilorin might need a constant power supply to run ovens. If PHCN supply is unreliable, do you invest in a diesel generator or solar alternative? How much downtime can you tolerate before it affects your production?

Tip: Don’t assume that because others are doing it, you can too. Check your specific location, suppliers, and available labour. Small technical problems can grow fast and cost you big.

Step 4: Analyse Financial Feasibility

This step forces you to answer a critical question: Will this business make money, or am I about to burn capital?

You will need to estimate:

• Startup capital: One-time costs to get off the ground (equipment, licenses, branding, setup)
• Running costs: Recurring monthly or quarterly expenses (salaries, rent, fuel, raw materials, marketing)
• Sales and revenue forecast: Based on how much you plan to sell and at what price
• Break-even point: When your revenue covers your expenses
• Profit margins: What’s left after covering your costs

Here’s a sample projection for a cassava processing plant:

Then, estimate revenue. For example, if each bag of garri sells at ₦15,000 and you produce 80 bags a month, that’s ₦1.2 million in monthly revenue. Subtract your ₦660,000 monthly cost, and you have ₦540,000 in gross profit.

Tip: Always build both optimistic and conservative scenarios. Nigeria’s business climate can change quickly, pricing, costs, and demand may shift.

Step 5: Evaluate Legal and Regulatory Requirements

No matter how great your idea is, if it is not legally compliant, it won’t last.

You need to understand the rules of your industry, especially in Nigeria, where regulations can be strict and slow-moving.

What to check:

• CAC registration (business name, limited liability company)
• Tax registration (TIN from FIRS)
• Industry-specific requirements: e.g., NAFDAC for food or cosmetics, NCC for telecom, SON for quality control
• Local government levies
• Import or export licenses if your business deals in cross-border trade

Example: Planning to export agricultural produce? You will need export licenses, phytosanitary certificates, and quality inspection reports. Missing even one step could delay or block your shipment.

Tip: Speak to a business consultant or legal adviser before you start. Ignorance is not an excuse when penalties arrive.

Step 6: Review Operational Feasibility

This is where you think about how your business will run day to day. Do you have the right systems, processes, and people to keep things moving?

Key considerations:

• Staffing: Who’s running what?
• Supply chain: How reliable are your suppliers?
• Customer service: How will you handle complaints, orders, and deliveries?
• Tech stack: Do you need inventory software, CRM tools, or e-commerce platforms?

Example: Running an online clothing store means handling orders, keeping inventory updated, and managing returns. You will need a simple but solid system, even if it’s Excel, to avoid chaos as you grow.

Tip: Operational issues often do not show up until the business grows. Anticipate challenges and build lean but effective systems from the start.

Step 7: Analyse Scheduling and Timeline Feasibility

Every business takes time to build. This step helps you figure out how long it will take to set up, launch, and become profitable.

Break your project into phases:

• Research and feasibility study
• Business registration and branding
• Equipment and inventory setup
• Staff hiring and training
• Soft launch or pilot
• Full-scale operations

Example Timeline – Mobile Payment App

Tip: Build in time buffers. Nigeria has a way of testing your patience with delays from government offices, power outages, or supplier hiccups.

Step 8: Write and Review the Feasibility Report

Now that you have gathered your research, it is time to put it all together in one well-structured document.

What your report should include:

• Executive Summary
• Description of the Business Idea
• Market Research and Analysis
• Technical and Operational Plan
• Financial Projections
• Legal and Risk Analysis
• Final Recommendation

Make it professional. If you are seeking funding, partners, or regulatory support, your feasibility study needs to speak clearly and confidently.

Tip: Keep it factual. This is not a pitch, it is a diagnostic. Be honest about risks and challenges. It builds credibility.

Feasibility Study Example (Nigerian Case Study)

Let’s walk through a practical example of a feasibility study tailored to the Nigerian environment. We will assess a real business idea: setting up a cassava processing plant in Ogun State. This example touches on all key areas- market demand, technical needs, cost analysis, and legal compliance.

Business Idea Overview

The business aims to establish a cassava processing plant that produces three primary products: garri, cassava flour, and industrial-grade starch. These will be sold to:

• Food retailers and supermarkets
• Schools and catering services
• Wholesalers in urban and semi-urban areas

The location is Asero, Abeokuta, strategically chosen for its proximity to cassava farms in Odeda, Ifo, and Ijebu. This allows for reduced logistics costs and a more reliable supply chain.

Market Feasibility

Cassava is Nigeria’s most produced crop, yet a significant portion of harvests spoil due to a lack of efficient processing and storage. This opens up an opportunity to fill a visible gap.

Market Insights from Research:

• Nigeria contributes over 20% of global cassava output, but less than 40% is processed industrially.
• A local survey revealed that 86% of bulk buyers would prefer packaged, clean garri over traditional, loose versions.
• 70% of caterers and food vendors indicated a willingness to pay more for reliable supply and standardised packaging.

Identified Market Gap:

• Local competitors operate informally with no consistent branding.
• Products often have shelf life issues or quality concerns (e.g., contamination with sand or water content).
• No large-scale processors focusing on cassava flour or starch within the immediate catchment area.

This means the business can differentiate by offering:

• Hygienically packaged products
• Consistent bulk delivery
• Clear branding and traceability

Technical Feasibility

The factory setup will be compact but functional, using equipment that can be sourced locally.

Key Equipment Needs:

Other technical needs include:

• Borehole installation for water
• Processing shed construction (half plot)
• Storage room for both raw cassava and packaged products

Staffing Plan (Initial Phase):

All machinery will be installed by the vendor, and basic training will be offered for the operators. A branded distribution van will also be required for logistics.

Financial Feasibility

The startup cost covers land lease, equipment, legal fees, initial labour, and packaging.

Estimated Capital Requirements:

Projected Monthly Revenue and Operating Cost:

With consistent sales and prudent management, the business is projected to break even within 8 months, with profits increasing as brand recognition and capacity improve.

Legal and Regulatory Feasibility

Compliance is critical in the food processing sector. Here are the primary requirements:

• CAC registration as a Limited Liability Company
• Tax Identification Number (TIN) from FIRS
• NAFDAC registration for packaged food items
• SON compliance for food labelling and packaging
• Local health permits from the state and LGA health authorities

These can be obtained within 4 to 8 weeks if processes begin early. A legal consultant (ReDahlia – WhatsApp- 08188122223) has already been engaged to guide the business through applications and inspections.

Estimated total cost for full regulatory compliance: ₦350,000 (already budgeted).

Operational Feasibility

Operations will follow a structured weekly plan:

• 4 production days: Receiving cassava, processing, drying, frying
• 1 packaging day: Quality check, sealing, labelling
• 2 distribution days: Deliveries to retailers, institutional buyers

Orders will be taken via direct contact and digital platforms (WhatsApp, Instagram). A small CRM tool will track sales and inventory, with weekly reconciliations by the operations lead.

Staff will receive basic training on:

• Hygiene practices
• Equipment handling
• Packaging standards
• Inventory and record-keeping

The plant has a capacity to scale production by 30% without additional machinery, giving room for quick expansion in response to demand.

Scheduling and Timeline Feasibility

Estimated Launch Timeline:

This phased schedule ensures time buffers for any unforeseen delays with government agencies or suppliers.

Final Recommendation

This cassava processing plant has clear commercial viability. The research supports strong local demand, accessible raw materials, a favourable competitive landscape, and a feasible technical setup.

By addressing hygiene, consistency, and branding, three areas most existing players ignore, the business can quickly secure a loyal customer base.

Success will depend on:

• Maintaining consistent production and delivery
• Navigating regulatory hurdles efficiently
• Investing in brand trust and community partnerships
• Managing operations and cash flow tightly in the first 12 months

With the right execution, this business is positioned to grow from a local supplier into a regional processor within two years.

Common Mistakes To Avoid When Conducting a Feasibility Study

A feasibility study is only as good as the quality of thinking, research, and honesty behind it. Many entrepreneurs rush through the process or cut corners, and the result is a flawed roadmap that leads them straight into trouble.

Here are the most common mistakes Nigerian entrepreneurs make when conducting a feasibility study and how to avoid them.

1. Making Assumptions Without Verifying Them

Assuming there is demand because “everyone eats garri” or “people love mobile apps” is not market research. One of the biggest traps is mistaking enthusiasm for evidence. Just because your friends and family say they’d buy doesn’t mean the general market will respond the same way.

Avoid this by: Talking to potential customers, surveying buyers, visiting competitors, checking real pricing, and using data from reliable sources like NBS, SMEDAN, or industry-specific reports.

2. Underestimating Startup and Operating Costs

Many feasibility studies only account for the obvious costs – equipment, rent, and maybe salaries. But what about fuel? Repairs? Licensing delays? Packaging? Marketing? These overlooked costs often hit when it’s too late to adjust.

Avoid this by: Including contingency funds in your budget. Add at least 10–15% on top of your projected costs to stay safe. Track costs as you research and speak to business owners already in your industry.

3. Ignoring Regulatory Requirements

Legal compliance in Nigeria can be tedious, especially in regulated sectors like food, tech, or manufacturing. Skipping over these requirements in your study will cost you time and money down the road, sometimes even force a shutdown.

Avoid this by: Researching every permit, licence, and inspection required before launch. Speak with lawyers or consultants and build in realistic timelines for approval. Regulatory bodies like CAC, NAFDAC, and SON each have specific processes and fees, don’t assume they’re quick or cheap.

4. Overestimating Revenue Potential

It’s tempting to dream big – “If I just sell to 1% of Lagos, I will be rich.” But projections must be grounded in reality. Start small and scale as you gather real data. Overestimating income leads to poor cash flow planning, funding shortages, and disappointed investors.

Avoid this by: Using conservative projections. Create three revenue scenarios: best case, likely case, and worst case. Plan for the worst, and if you do better, it’s a win.

5. Failing to Define the Customer Clearly

Saying “everyone” is your customer means you have not done enough thinking. Businesses that try to serve everyone end up connecting with no one. You must narrow your focus.

Avoid this by: Creating a clear customer profile. Are you targeting young professionals in Abuja? Market traders in Sango Ota? Restaurants in Lekki? Know your customers’ habits, pain points, and spending patterns.

6. Not Testing the Idea on a Small Scale

Jumping straight into full production without testing can be disastrous. You might discover that demand is not as strong as you thought, or your pricing is off, or your packaging does not appeal to buyers.

Avoid this by: Running a pilot phase. Produce a small batch. Sell to friends, neighbourhood stores, or through WhatsApp. Get feedback. Refine your product and process before going all in.

7. Copying Competitors Blindly

Many entrepreneurs say, “My neighbour is doing well with this business, so I will do it too.” What they don’t see are the years of experience, personal networks, and insider know-how behind that success.

Avoid this by: Understanding the business context deeply before jumping in. What worked for someone else might not work for you. Your strength should be in your unique value proposition, not imitation.

8. Rushing the Process

Feasibility studies take time. Rushing through just to tick a box defeats the purpose. A shallow study gives you a false sense of security and leads to expensive mistakes down the line.

Avoid this by: Taking your time. Do the groundwork properly. Visit markets. Speak to regulators. Review competitors. You don’t need perfection, but you do need clarity.

Free Feasibility Study Checklist

This feasibility study checklist pulls together all the critical questions and steps you need to cover when conducting a feasibility study. It is designed specifically for Nigerian entrepreneurs and works for businesses across industries—agriculture, tech, fashion, food, manufacturing, and more.

Use this list to stay on track, avoid blind spots, and ensure you are making informed decisions before launching your venture.

1. Business Idea Clarity

• Have you defined your product or service clearly?
• What problem does your idea solve?
• Who exactly is your target customer?
• What makes your idea different or better than existing options?

2. Market Feasibility

• Have you researched your market thoroughly?
• Who are your competitors, and how are they performing?
• What is the size and growth potential of your target market?
• What are the buying habits, price points, and preferences of your customers?
• Have you spoken directly with potential buyers?

3. Technical Feasibility

• What equipment or technology do you need?
• Can you access necessary infrastructure like electricity, water, and internet?
• Are skilled workers available in your location?
• Do you understand your production process from start to finish?

4. Financial Feasibility

• Have you calculated your total startup costs?
• Do you have a breakdown of your monthly operating expenses?
• What is your expected monthly income and profit margin?
• How long will it take to break even?
• Have you considered multiple financial scenarios (best case, worst case)?

5. Legal and Regulatory Feasibility

• Is your business name registered with CAC?
• Do you have a Tax Identification Number (TIN)?
• Are you aware of any sector-specific licenses or permits (e.g. NAFDAC, NCC, SON)?
• Have you budgeted for regulatory fees and legal support?
• Are you compliant with local government health and safety rules?

6. Operational Feasibility

• Do you have a clear day-to-day operations plan?
• How will you source and manage inventory or raw materials?
• What systems will you use for accounting, sales, and logistics?
• Do you have a staffing plan with defined roles and responsibilities?
• Can your current model scale up if demand increases?

7. Scheduling and Timeline Feasibility

• Do you have a realistic launch timeline with key milestones?
• Have you factored in delays for registration, equipment delivery, or approvals?
• When do you expect to start generating revenue?
• How long before the business becomes profitable?

8. Final Review

• Have you written and organised your feasibility study into a report?
• Does your report include your findings, data sources, and clear recommendations?
• Have you reviewed your plan with an experienced business advisor or mentor?
• Are you confident in the viability of the business based on your findings?

Pause, reflect, and go through this checklist honestly. It is not about ticking boxes, it is about spotting weak points early so you can fix them before spending a kobo.

Feasibility Study vs Business Plan – What Comes First?

One of the most common questions aspiring entrepreneurs ask is: Should I write a business plan first, or do a feasibility study? The short answer is this: the feasibility study comes first—always.

A feasibility study helps you answer a very simple but critical question: Should I even pursue this business idea? It gives you clarity on whether the idea is viable, sustainable, and worth the investment of time, money, and energy.

On the other hand, a business plan comes after you have confirmed that the business is feasible. It is your blueprint for how you will build, launch, and grow that business. It contains your strategy, financials, marketing plan, operational model, and goals.

Here’s a simple comparison to clarify the difference:

Skipping the feasibility study is like jumping into a river without checking the current. You may swim, but you might also drown without knowing what you are up against.

And writing a business plan without first proving your idea is feasible means building a structure on shaky ground. No investor, grant provider, or serious partner will take a plan seriously if the foundation has not been tested.

At Entrepreneurs.ng, we always advise our clients to treat the feasibility study as their first line of defence. It’s where you test your assumptions, uncover risks, and refine your thinking. Once you are confident that the opportunity is real, the business plan becomes much easier to write and far more persuasive.

If you’re at the point where your feasibility study gives you a green light, the next step is building a solid business plan.

You can explore our Business Plan Writing Services or get a ready-made Business Plan Template to fast-track the process.

Recommended Tools and Resources for Feasibility Studies in Nigeria

Conducting a feasibility study does not require fancy software or expensive consultants. What you need are the right tools, reliable data sources, and a bit of resourcefulness. Below are practical tools and platforms that Nigerian entrepreneurs can use to make their feasibility studies credible, data-driven, and well-informed.

1. Google Trends

Helps you analyse search interest for products or services over time. If you are planning to start a smoothie brand in Abuja, you can check how the search interest for “healthy drinks” or “smoothies in Nigeria” has changed over the past 12 months.

Use it to:

• Spot seasonal trends
• Compare search terms (e.g., “cassava flour” vs. “yam flour”)
• Identify emerging interests in your niche
  Website: https://trends.google.com

2. Nigerian Bureau of Statistics (NBS)

NBS is Nigeria’s official source for economic and sector-specific data. You will find stats on population, agriculture, consumer prices, trade, and more.

Use it to:

• Understand industry size and performance
• Gather real market data for your region or sector
• Back up your projections with credible numbers
  Website: https://nigerianstat.gov.ng

3. SMEDAN Reports and Resources

The Small and Medium Enterprises Development Agency of Nigeria regularly publishes sector reports, SME development data, and training materials for small business owners.

Use it to:

• Understand the SME landscape
• Access free guides on compliance and funding
• Learn how similar businesses are faring in Nigeria
  Website: https://smedan.gov.ng

4. WhatsApp, Facebook Groups, and Twitter Polls

These are surprisingly powerful grassroots tools for real-time insights. Use them to:

• Ask potential customers what they currently use and what they want
• Get feedback on pricing or packaging
• Test reactions to your business idea before launch

Tip: Join business-specific groups or location-based forums (e.g., “Lagos Fashion Founders” or “Abuja Food Entrepreneurs”).

5. Statista (Free Version)

While some Statista reports require a subscription, many data points are free and useful for global and regional trend spotting.

Use it to:

• Compare Nigeria’s industry data with global benchmarks
• Get visualised graphs to add to your report. Website: https://www.statista.com

6. Google Forms and Typeform

For digital surveys, especially when you want feedback from a large number of people quickly. You can share survey links via WhatsApp, email, or Instagram stories.

Use it to:

• Collect market research data directly from your audience
• Validate assumptions about customer needs and behaviours
  Website: https://forms.google.com

7. Regulatory Websites

If your business operates in a regulated sector, you should visit these platforms directly:

• Corporate Affairs Commission (CAC): https://cac.gov.ng
• Federal Inland Revenue Service (FIRS): https://firs.gov.ng
• NAFDAC: https://nafdac.gov.ng
• Standards Organisation of Nigeria (SON): https://son.gov.ng

These websites provide step-by-step guides, downloadable forms, and fee schedules for everything from registering your business to getting food product certifications.

8. Entrepreneurs.ng Resources

We have built tools, templates, and services specifically for Nigerian entrepreneurs.

Use our platform to:

• Download a ready-to-use Business Plan Template
• Get help with Business Registration and Compliance
• Access our services and our resources here.
• Subscribe to our Newsletter for weekly tips, tools, and updates

These tools will help you avoid guesswork and build your feasibility study on solid ground, giving you the confidence to move forward or the wisdom to pivot early.

Conclusion

Every successful business begins with a simple question: Will this work? A feasibility study helps you answer that question with clarity, not guesswork. It gives you the confidence to move forward or the wisdom to pivot before making costly mistakes.

For Nigerian entrepreneurs, where resources are often limited and the environment is unpredictable, doing your due diligence is not optional; it is essential. A well-executed feasibility study helps you avoid blind spots, understand your market, control costs, comply with regulations, and build a business model that stands a real chance of success.

From defining your idea and testing market demand to calculating real costs and navigating legal hurdles, this guide has walked you through how to conduct a feasibility study in Nigeria step-by-step. You now have the tools to assess your idea honestly and position it for long-term growth.

Do not skip this step. It is not just preparation, it is protection.

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Frequently Asked Questions (FAQs) on Feasibility Study

1. What is the main purpose of a feasibility study?

The main purpose is to determine if your business idea is viable. It helps you assess market demand, technical requirements, legal obligations, financial costs, and potential risks before you invest time or money. It is the smart way to test whether an idea makes sense in the real world, not just in your head.

2. Is a feasibility study the same as a business plan?

No, they are different tools for different purposes. A feasibility study comes before the business plan. It answers the question: Should I go ahead with this idea? The business plan answers: Now that I have decided to move forward, how will I do it?

3. Can I conduct a feasibility study on my own?

Yes, you can, especially for small businesses. But it takes time, effort, and discipline. You will need to research your market, estimate costs accurately, understand legal requirements, and analyse risks. For more complex ventures, it is wise to work with a consultant or business expert to avoid blind spots. You can also use resources like our Business Plan Template and explore our Business Services for guidance.

4. How long does it take to complete a feasibility study?

It depends on the size and complexity of your business idea. For a micro or small business, it can take anywhere from 1 to 3 weeks if you are focused and doing it yourself. For medium-sized or regulated businesses, expect 3 to 6 weeks, especially if you need to consult experts or regulatory bodies.

5. How much does it cost to do a feasibility study in Nigeria?

If you’re doing it yourself, the main cost is your time. But if you hire a consultant, expect to pay anywhere from ₦300,000 to ₦5,000,000 or more, depending on the scope of work. This often includes market research, financial projections, competitor analysis, and a professionally written report.

6. Do I need a feasibility study to get funding?

Yes. Most investors, banks, or grant providers will ask to see proof that you have done your homework. A feasibility study shows them that your idea is based on facts, not emotions. It gives them confidence that you have thought through the risks and know how to handle them.

7. What should be included in a feasibility study?

At the very least, your feasibility study should include:

• Executive summary
• Clear description of the business idea
• Market research and competitor analysis
• Technical requirements (equipment, logistics, staffing)
• Financial projections (costs, revenue, break-even)
• Legal and regulatory requirements
• Operational and timeline planning
• Risk assessment and recommendations

8. What’s the biggest mistake people make when doing a feasibility study?

Rushing the process and making assumptions without verifying them. Many people rely on personal opinions or guesswork instead of data. Others skip legal and regulatory checks or underestimate real costs. All of these can lead to poor decisions and wasted investments.

9. Do I still need a feasibility study if I’m copying a business that already works?

Yes, absolutely. Just because a business is successful for someone else does not mean it will automatically work for you. Their situation may be different—location, network, capital, timing, even luck. Your feasibility study helps you understand what success will require in your own context.

10. Should I still do a feasibility study if I have limited capital?

Yes, and especially if your capital is limited. When funds are tight, you can not afford costly mistakes. A feasibility study helps you allocate your limited resources wisely, avoid unnecessary expenses, and increase your chances of building a profitable business on a small budget.

11. What happens if my feasibility study shows that the business idea is not viable?

That is actually a success, not a failure. It means you have just saved yourself money, time, and disappointment. You can either:

• Adjust your idea and try again
• Explore a different opportunity
• Find a new angle or market niche that improves the odds
  Better to discover the red flags early than after you’ve committed your savings or borrowed capital.

12. Can I use the feasibility study later when writing my business plan?

Yes, and you should. The data, insights, and findings from your feasibility study form the foundation of a strong business plan. You’ll already have your market research, financial estimates, and legal framework laid out, making the planning process faster and more effective.

13. Should I pay someone to do a feasibility study or write my business plan?

If you have the budget, working with an expert can be a game-changer, especially for formal ventures, regulated sectors, or funding applications. Professionals can see angles you might miss, back your plan with credible data, and give your documents polish and structure. Entrepreneurs.ng offers business planning services tailored to Nigerian entrepreneurs who want to get it right from the start.

14. Can I skip the feasibility study if I’ve already started the business?

If you have already launched but things are not going as planned, you can do a retrospective feasibility review. It is like a post-mortem to understand what’s working, what’s not, and what adjustments are needed. It’s never too late to check the facts and pivot wisely.

15. Are feasibility studies only for new businesses?

Not at all. You can conduct a feasibility study when:

• Expanding to a new location
• Launching a new product or service
• Entering a new market segment
• Taking on a large investment or loan
• Pivoting your existing business model
  Feasibility studies help with decision-making at every stage of your business journey.